SBS Business Report
For the year Ended December 31, 2012 (Security Code: 2384)

B usiness Hig h l i g h t s
SBS Business Report

SBS Group meets the various logistics needs withthe utmost quality.
Sales by Business Segment

Key Objectives and Strategies

Provide high value-added logistics andlogistics support service to meet the client
needs

Entry in Top 10 of the industry(Human resources,
Environment-related,
Marketing)

Logistics
93.3％

For the year ended December 31, 20122013 Forecast\128.0billionthe logistic functions in all directions

Other 4.8％

Property Management
2.0％

Net Sales

3PL Corporate Group which has

Operating
Income\3.1

Dividend per
Share

\30

billion

3 Strategies

Expand 3PL
and ensurestability (food)

Full-fledged
overseas businessdevelopment with
Asia as theprimary target

M&A anddevelopment oflogistics facilities

Business
StrategyInternational
Strategy

Investment
Strategy

Development ofGroup Management Structure
Low cost operation structure 〜
Environment to extract group synergies※ Dividend per share shown is calculated on the basis of stock split/share trading unit system we recently switched to.

Logistics
Business

Logistics Support
Business

General
Logistics●3PL ●International Logistics ●Warehouse Logistics●Distributive Processing ●Special Transportation●Logistics Consulting Others

Food
Logistics●Three-Temperature Nationwide Logistics ●3PL
●Distributive Processing ●Home Delivery●Logistics Consulting Others

Specialized
Logistics●Same-day Delivery ●3PL

Property
Management●Development and sale of logistic facilities

Other

OthersOthers●Human resources ●Environment-related ●Marketing Others

Disclaimer: Forward-looking statements included in this report are based on information and assumptions consisting of uncertain
factors that may influence our performance available to the Company on the date of this report s publication. Due tovarious unforeseen circumstances, however, actual results may differ from such forecasts.

1

Message fro m t h e P r e s i d e n t
SBS Business Report

The Group established a numberof overseas bases centeringon the Asian region.

We went further with the expansionof our business foundations,and at the same time achieved
what has been our long-cherisheddream: being listed
in the Tokyo Stock Exchange.
Representative Director and President : Masahiko Kamata

The business domain of the SBS Group iscompany in Singapore that shall control

every possible industry and is one aspect

and these strategic moves will facilitate

logistics, an area that is closely related toof social infrastructure that is truly indispensable to business activities.

In the Group, a number of companies withdifferent origins and histories are organically assembled together controlled by one

pure holding company, and are continuously growing together in one united body.

Last year, against the backdrop of a slowdown of the world economy, the continuing appreciation of the yen, and other ad-verse factors, feeling of stagnation became
even stronger than before. The environment has not been favorable in the logistics
industry either with such factors as theintensification of competition among rival

companies and the unstable fuel prices adversely affecting the industry.

To withstand the harsh environment, theGroup actively marketed its services withproposal-based sales making an effort toexpand its 3PL business.

Also, so as to enable us to actively develop
our international logistics business in the

future, we embarked on building our overseas network including establishment of abusiness operations in the Asian region,
our future growth.

In December, 2012, the Group celebrated

its 25th anniversary of establishment, alsoachieving its long-time goal of being listed
in the Second Section of the Tokyo Stock
Exchange.

I would like to thank all of you for yoursupport from the bottom of my heart.

In commemoration of our becoming a

listed enterprise, it has been decided forthe year-end dividend to add 10 yen of acommemorative dividend to the 30 yen of
the regular dividend per share.

For the 2013 fiscal year, we are planningto unify all of the companies of the Group
under one brand so as to gain the Group's

recognition and synergize the efforts of theindividual companies. We also plan tomake efforts so as to become a company
listed in the First Section of the Tokyo
Stock Exchange.

The SBS Group shall continue to expand

its business and reinforce its managementbase further, and we all hope that you will
bestow your support to us in the future.

2

Special Fea t u r e
SBS Business Report

Tracing the 25 years of history of the SBS Group

Reaching the sales volume of 10 billion yen in 10 years
and 100 billion yen in 20 years after establishment.
The SBS Group has grown reaching the targets set
at the time of establishment.
The next target is to reach 200 billion yen
before our 30th anniversary.
The SBS Group was established in December, 1987 under the name of Kanto Sokuhai Co., Ltd.,

which was a logistics company offering a service, which was truly ground-breaking at the time - a
totally new logistics service of the same-day delivery.

From that time, the Company made relentless efforts aiming at expansion and enhancement of
our services striving to become a logistics enterprise offering a total solution, an enterprise thatcan respond to each and every need of our customers.

Today, as we are celebrating the 25th anniversary of establishment, the Group has grown to be
an all-round logistics enterprise with technical capabilities enabling us to handle everything fromfoodstuffs to special cargo, with transporting capabilities that can accommodate both domestic
and international shipments, and with collective strength, which allows us to be a one-stop
solution including development and management of logistics facilities.

We shall accelerate the Group's growth rate in the future, strive to reach the sales of 200 billion
yen and become one of the top ten logistics enterprises in the country.

1987

December：Established Kanto Sokuhai Co.,
Ltd. (currently SBS Holdings Inc.) in Koto-ku,
Tokyo offering same day delivery service
between companies.

April：The corporate name ischanged into Sogo Butsuryu
System Co., Ltd. (currently SBS
Holdings Inc.) and the head
office is relocated to Sumida-ku,
Tokyo.

Co., Ltd. (currently SBS Holdings Inc.)

1998

March：Marketing Partner Co., Ltd. is established forthe purpose of marketing analysis, marketing planning,and database development.

1997

June：Staff Japan, Ltd. (currently SBS Staff

Co., Ltd.), a contractor specializing in light duties
in the area along the bay is established.Human
resource service business is launched.

September：E n v i r o n m e n t a l b u s i n e s soffering services from the collection andtransport of waste to the intermediate treatment
and recycling is launched by the Sogo Butsuryu
System Co., Ltd.

1992

June：Saitama Nissho,

Ltd. (currently Sogo
Butsuryu System Co., Ltd.)
joins the Group.

100

December：The corporate name is changed into SBSJanuary：3PL (third party logistics) service businessis launched for the purpose of provision of a one-stop
logistics service.

1989■ Net sales(Billions of yen)
150

1999

50

0

3

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Special Fea t u r e
SBS Business Report

2006年

2008年

M a r c h：K i m i t s u M a t e r i a l s N o . 3
Warehouse is developed(One-storied building with the total
floor area of 15,524m²)

May：Kawagoe Warehouse isdeveloped (Four-storied building
with the total floor area of
6,360m²)

2009年

Kawagoe Warehouse

2007年

March：West Japan Logistics
Center is developed(Four-storied building with thetotal floor area of 37,676m²)
August：Chikuma Logistic
Center is developed(One-storied building with the
Kawagoe Logistic Center
total floor area of 5,744m²)
November：Kawagoe Logistic Center is developed(Four-storied building with the total floor area of 47,284m²)

2006

March：N o d a L o g i s t i c C e n t e r i sdeveloped(Four-storied building with the total
floor area of 35,567m²)
November：Tokorozawa Warehouse
is developed(Two-storied building with the total
floor area of 8,693m²)

2012年

Tokorozawa Warehouse

October：Noda Yoshiharu Logistic Center is developed(Four-storied building with the total floor area of 25,375m²)

2012

January：Zentsu Co., Ltd. joins the Group.This reinforces

May：SBS Logistics RHQ Pte. Ltd. is established in
Singapore to control business operations in the Asian region.

the foodstuffs logistics and the home delivery service
function.

July：Sogo Butsuryu System Co., Ltd. establishes in

April：The corporaet name is changed into SBS Holdings

Shanghai, China a resin processing plant (Shanghai Acrylic
Resin Processing Corporation) manufacturing shop furnishingsfor display and sales promotion made from acrylics.

Inc. and the company becomes a pure holding company.

2005

December：The Group is listed in the Second Sectionof the Tokyo Stock Exchange.

June：Tokyu Logistic Co., Ltd. (currently TL LOGICOM Co.,

2011

Ltd.), Nihon Kamotsu Kyuso Co., Ltd., and other companies areadded to the Group.This enables the Group to expand the types ofcargo handled and reinforce its 3PL business.

April：Nippon Record Center Co., Ltd. joins

the Group.This enables the Group to launch its
business offering logistics services involving
such products as music and video mediums,
reinforcing the logistics business handlinghigh-mix low-volume products.

2004

May：Yukijirushi Butsuryu Co., Ltd. (currently

Foods Lec Co., Ltd.) joins the Group.By this step theGroup moves into the foodstuffs logistics business,at the same time establishing a nationwide network.

October：An international logistics company
Atlas Logistics Pvt. Ltd. located in India joins
the Group becoming its first overseas
subsidiary.This expands the Group's overseas
network and reinforces international logistics.

September：A-MAX Co., Ltd. is established forthe purpose of development and securitization ofreal estate.Business of development of logistics
facilities is launched.

2010

2003

April：Victor Logistics Co., Ltd.

(which merged with TL LOGICOM in2011) joins the Group.This measureenables the Group to make inroads
into the area of logistics for electricalequipment manufacturers andreinforce international logistics.

May：International logistics services arelaunched to expand the business domain.

December：The company becomesan over-the-counter company registeredby the Japan Securities Dealers
Association (currently Osaka Securities
Exchange, Co., Ltd., JASDAQ Market).

100

Listed in theSecond Sectionof the Tokyo
Stock Exchange

July：AC System Corporation joins
the Group.This step enhances theGroup's customs clearance business.

■ Net sales(Billions of yen)
150

Listed in the
JASDAQ50

0

Noda Logistic Center

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

4

Topics
SBS Business Report

Current Activities by the SBS GroupThe Group is awarded lettersof appreciation for the support
we oﬀered to the areas
devastated by the earthquake
and tsunami

New base for customs clearance
business is established in
the Yokohama Harbor(AC System Corporation, (hereinafter referred to as "AC System"))(TL LOGICOM, SBS Logitem)

January

March, May

AC System, a company engaged

TL LOGICOM and SBS Logitem

established its Yokohama office in
the Yokohama Port International
Cargo Center.
A shipping branch of TL LOGICOM
is also located in this facility, and
the Group shall use this advantage to reinforce theinternational logistics function through cooperation
between the two offices.

appreciation from the Kanto
District Transport Bureau forthe rapid transportation of
goods and other support thet w o companies had provided
to the areas stricken by the Great East Japan
Earthquake.

in customs clearance work,

were awarded letters of

A company in Singapore isestablished to control business
operations of the Group in
the Asian region

Seminar on the Revised Temporary
Staﬀ Services Law is held
(SBS Staff)

April(SBS Group)May

Temporary Staff Services Law wasrevised and has been enacted
since October of last year.
SBS Staff held a seminar for thecustomers who were worrying
about the impact of this revision.
During the seminar, we explained
the points of importance in the content of revisionand the measures that need to be implemented after
the enactment.

SBS Logistics RHQ Pte. Ltd.
(hereinafter referred to as"SLRHQ") is established in
Singapore to serve as the pivotal
location for the Group's overseas
business controlling businessactivities in the Asian region.
Work is launched on establishment of a network ofbusiness bases in all of the countries of the ASEAN
preparing for a full-scale advancement into the ASEAN.

Reorganizatio n of subsidiaries
aiming at reinforcemen tof the management base is
implemented

Resin treatment plant isestablished in Shanghai, China(Sogo Butsuryu System)

July
Sogo Butsuryu System establishes
Shanghai Acrylic Resin Processing
Corporation, a plant for processing
acrylic resins in Shanghai, China.

The company launches manufacture
and processing of shop furnishingsfor display and sales promotion.

5(SBS Group)

July
The Group merges Izu Express
Trucking Inc. into Nihon Kamotsu
Kyuso Co., Ltd., and TL Service Co.,
Ltd. into TL Transport Co., Ltd.
These steps were made to reinforce
the management base and improve
the quality of services offered.

Topics
SBS Business Report

CO₂

Two companies of the Groupare highly evaluated by the
Tokyo Freight Transportation
Appraisal System

Noda Yoshiharu
Logistic Center is completed(TL LOGICOM)(SBS Group)

AugustOctober

Two companies participate inConstruction of the Nodaby Tokyo Prefecture toevaluate improvement of fuelcompleted.
With the total floor area of

the appraisal system launched

Yoshiharu Logistic Center isconsumption with a view to
reduce CO₂ emissions. Nippon
Record Center is awarded
the highest three-star award and TL LOGICOM isawarded two stars.
The Group as a whole shall continually participate inthese evaluations in the future.

Maintenance of bases in
the ASEAN area

(SBS Group)

about 10,000 tsubos and thelatest environment-friendly
facilities this large-scale center
shall help the Group expand its 3PL business further.

Nationwide joint delivery basefor chilled products isestablished in Tokorozawa(Foods Lec)

OctoberNovember

The Group invests in the companies
in Singapore, Thailand, Malaysia,

Foods Lec, a company of theGroup engaged in foodstuffs
logistics, establishes a lowtemperature warehouse of
1,500 tsubos in the Tokorozawa
Branch, which becomes the firstjoint delivery center specializing
in chilled foods in the company.
The warehouse is equipped with the latest
management system and ensures security and safetyof the food handled.

and Vietnam affiliated to Atlas (asubsidiary of the Group located inIndia).
The Group placed these companies

under the management of theSLRHQ, which had been established in May, thus
creating a network of business bases in the ASEAN
region.

December 14

The Group is Listed in
the Second Section of
the Tokyo Stock Exchange.
On December 14, SBS Holdings has
been listed in the Second Section of
the Tokyo Stock Exchange.
Masaki Shizuka, Senior Executive Officer of
the Tokyo Stock Exchange (left) andMasahiko Kamata, Representative Director
and President of the Group (right)

6

Consolidated Financial Statement
SBS Business Report

Although the economic environment continued to be harsh, sales increased as compared tothe preceding year due to such measures as the expansion of our 3PL business and themergers and acquisitions the Group implemented in the previous term.
Both the operating income and the ordinary income showed a considerable increase due tothe absence during the term of the impact of the previous term's Great East Japan
Earthquake, as well as due to measures conducted to improve operating eﬃciency.
Net income for the year, on the other hand, decreased as compared to the preceding year
due to such factors as the impairment loss on facilities related to the warehouse integrationthat will be implemented in the next year and for which the entry of extraordinary loss was
front-loaded, as well as an increase in the income taxes-deferred.

■ Net Sales■ Operating Income
YOY Change(Millions of yen)
150,000

5.6％UP

139,405
115,710 119,824 121,148

120,000

127,935

4,262
4,000

3,325
3,000

60,0002,000

30,000

1,000

2008

2009

2010

2011

2012

■ Ordinary Income

YOY Change

67.4％UP

5,000

3,995

0

2,901

2,888
2,177

2008

2009

2010

2011

2012

■ Net Income(Millions of yen)

4,000

33.2％UP

5,000

90,0000

YOY Change(Millions of yen)

4,291

YOY Change(Millions of yen)

34.7％DOWN

3,000

2,522

2,500

3,748

2,767

3,000

1,988

2,000

2,140

1,647

1,500
2,000

1,653

1,000

1,000

0

7

960

500

2008

2009

2010

2011

2012

0

2008

2009

2010

2011

2012

Consolidated Financial Statements
SBS Business Report■ Sales by Segment(Millions of yen)

FY2012Net Sales

YOY Change

FY2011

Operating Income

YOY Change

Net Sales

Operating Income

Logistics

119,330

5.9％

1,728

36.6％

112,698

1,265

Property
Management

2,504

4.6％

1,206

9.6％

2,392

1,101

Other

6,100

0.7％

44

‑

6,057

△211

Total

127,935

5.6％

2,901

33.2％

121,148

2,177※ Figures indicated above do not contain the proceeds of internal sales between segments.

● Logistics business: due to contribution to the sales of business results of two companies, which

newly joined the Group through mergers and acquisitions, as well as to the brisk
foodstuffs-related cargo movement and some other factors, sales increased. Operating income
also increased due to the progress made with improvements of the unprofitable businesses andthe fact that no earthquake-related losses were incurred during the term.

● Logistics support business: with the increase in the rent income from real estate for lease andother factors, both sales and profits in the property management business increased. In theother business, however, sales dropped, but as a result of measures to reduce overhead costs
and some other initiatives implemented in the environmental business, the operating income
moved into the black.

■ Performance Forecast for the Year Ending December 31, 2013 (By Segment)(Millions of yen)

Net Sales

YOY Change

Operating Income

YOY Change

Operating Margin

Logistics

119,160

△0.1％

1,800

4.2％

1.5％

Property
Management

2,660

6.2％

1,220

1.2％

45.9％

Other

6,180

1.3％

80

81.8％

1.3％

Total

128,000

0.1％

3,100

6.9％

2.4％

※ Figures of the earnings forecast contain the proceeds of internal sales between segments.

8

Consolidated Financial Statements
SBS Business Report■ Net Debt /Net Debt to Equity Ratio
Net Debt

Net Debt to Equity Ratio(Millions of yen)
50,00045,884

Net Assets

（％）
300

46,25140,000■ Net Assets / Equity Ratio

37,28739,09038,128250

242％
30,000200223％Equity Ratio(Millions of yen)
30,00027,75025,00020,00022,616
18,59825,06550

20,23840
30

15,00020,000165％

157％

10,000

0

2008

2009

2010

2011

150

139％

2012

100

0

23.2％

10,000
5,000
0

（％）
60

16.8％

2008

24.5％ 26.2％

18.6％

2009

20
10

2010

2011

2012

0

Basic Policies regarding the Profit Distribution and Per-Share Dividend■ ■ Dividend per ShareDividend of 10 yen commemorating
the listing of the Group in the Second
Section of the Tokyo Stock Exchange

40.0

40

equity, at the same time striving to ensure stable
30.0

30

30.0

30.0

redistribution of proﬁts that fully takes into
account the business results achieved.

23.0

For the term ended December, 2012, the year end

20

dividend has been set at 40 yen per share with 10

15

yen of commemorative dividend added to the10

regular dividend of 30 yen to commemorate the5listing of the Group in the Second Section of the
2009

2010

2011

2012

2013
(Forecast)※Dividend per share shown is calculated on the basis of stock
split‑share trading unit system we recently switched to.

9shareholders as one of the managerial policies of
its management base and improve the returns on

35

0

SBS Group regards redistribution of proﬁts toprimary importance, makes eﬀorts to strengthen

（yen）

25

Basic Policy regarding the Profit Distribution

Tokyo Stock Exchange.
Please note that we plan the dividend for the term
ending December, 2013 at 30 yen.

Corporate Profile & Stock Information
SBS Business Report

Corporate Proﬁle(As of December 31, 2012)

Company nameSBS Holdings, Inc.

Representative
director and president

Masahiko Kamata

FoundedDecember 16, 1987

Paid-in Capital¥3,833.93 million

Net sales¥127.9 billion (for the year ended December 31, 2012)

Head oﬃce

4-1-3 Taihei, Sumida-ku, Tokyo 130-0012, Japan
Tel: +81-3-3829-2222(main)
Fax: +81-3-3829-2822

Stock Information(As of December 31, 2012)

Number of shares authorized

51,568,400 shares

Number of shares issued

13,068,400 shares（including 41 treasury shares）

Share trading unit

100 shares

Number of shareholders

Major Shareholders

3,544(As of December 31, 2012)

Shareholder Name

Number of
Ratio ofshares held share held
(hundred shares) (%)

Masahiko Kamata

6,362,800

48.68

Japan Trustee Services Bank, Ltd. (Trust account)

559,100

4.27

Lines of Business

Logistics, property management, marketing,human resources, etc.

Major consolidated

TL LOGICOM Co., Ltd.

subsidiaries

Foods Lec Co., Ltd.

SBS Holdings Employee Share Ownership
Association

539,100

4.12

Zentsu Co., Ltd.

Hiroshi Date

384,800

2.94

SBS Logitem Co., Ltd.

The Chase Manhattan Bank, N. A.
London Secs Lending Omnibus Account334,800

2.56

Junichi Ouchi

309,400

2.36

Sogo Butsuryu System Co., Ltd.

TOBU Properties,Co.,Ltd.

285,600

2.18

SBS Finance Co., Ltd.

State Street Bank and Trust Client
Omnibus Account OM02

200,000

1.53

Hiroyuki Yoshioka

188,900

1.44

3E Corporation

156,000

1.19

SBS Staﬀ Co., Ltd.
Atlas Logistics Private Limited

A-MAX Co., Ltd.
Marketing Partner Co., Ltd.
PAM Co., Ltd.

The ratio of share held are calculated based on the number ofBoard of Directors and Auditors (As of March 26, 2013)
Representative director and president

Masahiko Kamata

Managing director

Kenichi Iriyama

Directors

Makoto Watanabeshares excluding 41 of treasury shares. Japan Trustee Services
Bank, Ltd. (Trust account) is a re-trusted employee share ownership association and the number of shares its trust account holds
includes 308,600 of our shares.

Distribution of Shares by Shareholder Type
Full-time auditor
Auditors(As of December 31, 2012)

Shin-ichiro Watanabe
Shigetaka Shomatsumoto
Masato Takeda
Jiro Iwasaki

The auditors Shigetaka Shomatsumoto, Masato Takeda and Jiro
Iwasaki are the external auditors.

Number of share issued: 13,068,400 shares
Non-Japanese Corporation

Securities firms

187,432 shares（1.43％）

661,700 shares（5.06％）

Japanese Corporations
707,300 shares（5.41％）

Treasury stock
41 shares（0.00％）

Financial institutions

1,044,100 shares（7.99％）

Individuals and others

10,467,827shares（80.10％）10